Cal Dive Earnings Double in Second Quarter

Cal Dive International, Inc. announced second quarter net income of $7.5 million, an increase of 106% over the $3.7 million earned in the comparable period of 2000. Diluted earnings per share increased 109% to 23 cents versus 11 cents a year ago. Revenues of nearly $49 million increased $8.9 million due to higher vessel utilization and better rates realized in marine construction activities.

Owen Kratz, Chairman and Chief Executive Officer, stated, "Cal Dive's dominant position in niche markets enabled second quarter earnings to double even though revenues increased only 22%. By adding assets and people to Aquatica we achieved 85% vessel utility in a shallow water market that supports higher margin drill rig activity. Our alliance with Horizon Offshore was particularly effective in the mid-water Gulf, which we dominate with our saturation vessels. In the Deepwater, the world class capability of our DP fleet was demonstrated by full utilization, with two vessels working outside the U.S. Gulf and only one, the Uncle John, active in the spot market.

"We believe that the uncertainty caused by negative investor sentiment toward the energy sector has created an opportunity to aggressively build our asset base for future growth. Our strategy will focus upon four markets: traditional Cal Dive subsea construction work on the OCS, deploying high technology solutions in the installation of Deepwater facilities, supporting life-of-field operations and partnering with customers in production contracting endeavors."

First half earnings of $18.3 million improved by 167% over the $6.9 million of 2000 and, in just six months, exceeded Cal Dive earnings for all of 1999. Diluted earnings per share of 55 cents compare to 21 cents for the first six months of 2000. First half revenues of $107 million increased by $27 million or 34%.